Trademark latest obstacle for China iPhone deal

Apple's bumpy road to releasing the iPhone in the massive Chinese subscriber market appears to have hit another pothole: Chinese electronics firm Hanwang Technology Co. already owns the trademark "i-phone" for mobile handsets in China, and the similarity of the two brands would make it illegal to sell Apple's smartphone under its now-iconic name, according to Wang Hao, general manager of BSFD, a Beijing-based intellectual property law agency. IDG News Service reports that Apple applied to register the iPhone trademark in China in late 2002, but its application only covered computer hardware and software, not mobile devices--two years later, Hanwang (also known as Hanvon) applied to register the i-phone trademark in the category covering phone equipment, including mobile handsets, and later went on to market a device called i-phone. Wang notes that to sell its iPhone in China, Apple would need to broker an agreement with Hanwang or else apply for the China trademark office to revoke Hanwang's rights to the i-phone brand. A Hanwang spokesperson said the company has not yet been approached by Apple about the issue, nor has it learned of any attempts to revoke its trademark.

According to a mid-June research note published by Bank of America/Merrill Lynch analyst Cynthia Meng, Apple and operator China Unicom have "most likely reached a deal for an exclusive two-plus year agreement" that will result in the iPhone making its Chinese retail debut sometime in the fourth quarter of 2009. Crediting "industry checks" with the insider information, Meng adds that details on pricing or subsidies remain unknown, but contends that based on conversations with retailers and vendors, the current suggested U.S. retail prices of $99, $199 and $299 are "affordable for [a] majority of high-end subscribers."

IDG News Service previously reported a WCDMA-based Apple handset has appeared on the approved product list published on the Chinese State Wireless Inspection Center government-managed industry arbiter's website--the device, apparently an iPhone, was cleared in May 2009 to use its assigned frequency range for five years, the center notes. China Unicom operates a WCDMA network. In related news, the Apple website is advertising a Beijing-based job posting to supervise "iPhone training" across Asia--the position's duties include designing training for carrier partners that sell the iPhone.

Apple has said it hopes to begin selling the iPhone in China in the next year. Negotiations between the computing giant and China Mobile reportedly broke down after the two firms reached a stalemate over the sale and distribution of mobile applications. Citing a source with the China Mobile Research Institute, Interfax reported in February 2009 that China Mobile and Apple spent about 18 months hashing out an agreement to introduce the iPhone to Chinese consumers--during the first of three rounds of negotiations, Apple demanded between 20 percent and 30 percent of the operator's revenues from iPhone users, a stipulation rejected by China Mobile. After the companies returned to the bargaining table, Apple offered to sell iPhones to China Mobile at $600 per unit while stipulating that the carrier subsidize any iPhone service bundles offered to users--again, discussions broke down.

For more over the iPhone trademark questions:
- read this IDG News Service article